Mortgages for foreigners in Turkey: are they possible, and do they make sense?

In short

Some Turkish banks lend to foreigners for property purchases, but on stricter terms than for citizens, usually requiring residence, documented income and a large down payment. Since its decision of 29 January 2026, the banking regulator has set loan-to-value caps that fall as the property price rises, and it has removed the distinction between new and resale homes. Home loans to individuals in Turkey are usually in Turkish lira and carry high interest rates, which is why most foreigners buy in cash or through developer instalment plans.

Written by Mohammed Bukhari, Real estate consultant

Last reviewed October 7, 2026

“Can I buy property in Turkey with a mortgage?” It is a sensible question, but the answer differs from what buyers are used to in other countries. In this guide we explain the situation in 2026: what is possible, on what terms, and when the alternatives are better.

Do Turkish banks lend to foreigners?

Yes, some banks do, but usually on stricter terms:

A valid residence permit in Turkey, or a clear preference for one.
Documented income and bank statements.
A bank account with the same bank. See the guide to opening a bank account.
A down payment that is often larger than for citizens.

Loan-to-value caps in 2026

Under the decision of the Banking Regulation and Supervision Agency of 29 January 2026:

The distinction has been removed between new and resale property in loan-to-value ratios.
The cap falls as the property price rises: high financing for lower-priced homes, and a small percentage for expensive ones.

These are maximum caps; the bank may lend less depending on its assessment of you and of the property.

Currency and interest

Home loans to individuals in Turkey are in Turkish lira as a rule.
Interest rates are high compared with many countries, and they change with monetary policy.
If your income is in another currency, work out how exchange rates affect your instalment.

Property eligible for financing

Banks finance property with sound paperwork, which listings indicate with the phrase Krediye Uygun:

A clear title deed. See the guide to title deed types.
Usually an iskan (occupancy certificate). See the iskan guide.
A bank valuation that sets the value the loan is based on.
Earthquake insurance and home insurance, and often life insurance.

Common alternatives

Paying cash: the simplest and fastest option.
Developer instalment plans: often interest-free until handover. See the guide to developer instalment plans.
Financing from your home country: a personal loan or mortgage at home, sometimes on better terms, once you have weighed the risks.

Citizenship and residence

If your goal is citizenship or residence, the way you pay and finance the purchase affects your file. Read the guide to citizenship file mistakes and the guide to transferring the purchase price before you decide.

Summary

A mortgage is possible for foreigners in Turkey, but it is not the easiest route: stricter terms, lira-denominated financing, high interest rates and caps that fall as the price rises. For most of our clients, paying cash or using a developer instalment plan is the better fit; for residents with income in Turkey, a loan may be an option worth comparing.